2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG

2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
Assessing countries’ preparedness
for autonomous vehicles

KPMG International

2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
Quick reader guide
The Autonomous Vehicles Readiness Index           This report uses the term ‘autonomous

                                                                                                   Index results
(AVRI) is a tool to help measure 25 countries’    vehicles’, abbreviated to AVs, to refer to the
level of preparedness for autonomous              technology used both within vehicles and                         2019          2018             Country                    2019 score
vehicles. It is a composite index that            externally, such as digital networks and road
combines 25 individual measures from a            infrastructure. It also uses AVs to refer to                      1             1     The Netherlands                         25.05
range of sources into a single score. More        vehicles that can do everything a traditional                     2             2     Singapore                               24.32
information on the results, methodology and       vehicle does without human intervention,
                                                                                                                    3            n/a    Norway                                  23.75
sources used is in the Appendix.                  sometimes described as ‘level 5 automation’,
                                                  where vehicles are fully self-driving and                         4             3     United States                           22.58
The intended core audience for the AVRI is        the human driver becomes a passenger.
public sector organizations with responsibility                                                                     5             4     Sweden                                  22.48
                                                  The terms AV and driverless car are used
for transport and infrastructure. It should       interchangeably, although this report also                        6            n/a    Finland                                 22.28
also be of interest to other public and private   covers autonomous buses and trucks.                               7             5     United Kingdom                          21.58
sector organizations that are involved with, or
make use of, road transport.                                                                                        8             6     Germany                                 21.15
                                                                                                                    9             8     United Arab Emirates                    20.69
                                                                                                                    10            11    Japan                                   20.53
                                                                                                                    11            9     New Zealand                             19.87
                                                                                                                   12             7     Canada                                  19.80
                                                                                                                   13             10    South Korea                             19.79
                                                                                                                   14            n/a    Israel                                  19.60
                                                                                                                   15            14     Australia                               19.01
                                                                                                                   16            12     Austria                                 18.85
                                                                                                                    17           13     France                                  18.46
                                                                                                                    18           15     Spain                                   15.50
                                                                                                                    19           n/a    Czech Republic                          14.46
                                                                                                                   20            16     China                                   14.41
                                                                                                                   21            n/a    Hungary                                 11.99
                                                                                                                   22             18    Russia                                   8.55
                                                                                                                   23             19    Mexico                                   7.73
                                                                                                                   24            20     India                                    6.87
                                                                                                                   25             17    Brazil                                   6.41

2   2019 Autonomous Vehicles Readiness Index                                                                                                    2019 Autonomous Vehicles Readiness Index   3
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
Contents                                                                                                  Foreword
                                                                                                          A year ago, our first Autonomous Vehicles Readiness Index sought to raise awareness of the

05                                             06
                                                                                                          transformational social and economic benefits that autonomous vehicle (AV) technology could
                                                                                                          offer society.

                                                                                                          It felt like a conversation in its infancy. Since then, through 2018, we have seen a huge

     Foreword                                                     Introduction                            acceleration in investment in AV technology, in policy adoption by governments to encourage
                                                                                                          AVs, and in media coverage of the topic.1 Countries and states including the Netherlands,
                                                                                                          the United Kingdom, Australia, France and California have passed or are passing legislation
     Richard Threlfall on how the                                 How governments can harness
     AVRI has evolved and what AV                                 AVs’ ability to increase road safety,
                                                                                                          opening AVs’ access to public roads. Trials are underway from Singapore to Madrid to
     adoption will mean for society.                              improve public transport and freight,   Gothenburg.
                                                                  and even reshape cities.
                                                                                                          To help maintain the momentum, we published this second edition of the index. It adds five
                                                                                                          new countries (Czech Republic, Finland, Hungary, Israel, Norway); new measures including

08                                             10
                                                                                                          consumer opinion on AVs; and provides greater insights into individual countries, drawing on
                                                                                                          the expertise of colleagues in KPMG’s national firms.

     2018                                                         Executive                               The Netherlands and Singapore again claim first and second place, respectively; the former
                                                                                                          benefiting from its European leadership in transport public policy, the latter from its brilliance
     milestones                                                   summary                                 in attracting investment from global technology leaders.

     Last year’s key events in the                                Overview of the top 5 countries,
                                                                                                          But many of the overall scores are very close and there are numerous opportunities, identified
     development of AVs.                                          methodology updates and key             in this report, for countries to make significant progress. Those that did would rise quickly in
                                                                  actions countries can take.             the rankings. The most successful countries have a policy framework that enables innovation,
                                                                                                          a strong track record in technology, high-quality road and digital infrastructure, and populations
                                                                                                          that are eager to adopt new technologies.

12                                             40
                                                                                                          I continue to believe that the social benefits of AV adoption will be enormous in reducing road
                                                                                                          deaths, improving accessibility for the young, old, disabled and those in remote communities,
                                                                                                          and driving economic growth. By sharing the best national achievements, I hope the AVRI will
     National                                                     The road                                continue to accelerate the pace of this revolution.

     profiles                                                     ahead
     Policies, events and companies                               What governments can do next,
     in each of the 25 countries with                             and how KPMG’s member firms
     commentary from KPMG’s                                       can help.
     national AV experts.

42   Appendix: Results and methodology
     Detail on the data and methodology used to build the AVRI.
                                                                                                          Richard Threlfall
                                                                                                          Global Head of Infrastructure
                                                                                                          KPMG International


                                                                                                                                                                                   2019 Autonomous Vehicles Readiness Index   5
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
                  Governments around the world are working on how            Freight is set to be another early adopter of AVs.
                  they can deliver AVs’ anticipated societal benefits.       The Netherlands, for example, is working with
                  These include the prospect of much-improved road           Germany and Belgium on establishing ‘truck
                  safety, more efficient public transport and freight        platooning’ — where one human-driven vehicle
                  services, and cleaner cities with more room for            leads a convoy of autonomous ones — on major
                  people and green spaces. There are also potential          roads. In the US, it is predicted that soaring
                  challenges to mitigate, including big changes              increases in delivery vehicle miles traveled (VMT)
                  to labor markets and industries including motor            could reach 78 billion VMT per year by 2040, to            came into force in May 2018, personal data will need to be       transport to deliver its goods and move its staff or clients.
                  insurance, privacy and cybersecurity risks, and            meet the consumer demand for same-day or                   separated from that needed to guide vehicles. The data-          There are likely to be some surprising industry-specific
                  greater suburban sprawl.                                   same-hour delivery.6 There is also strong potential        sharing environment is also important as it enables greater      impacts (see box).
                                                                             for AVs in closed environments such as ports.              collaboration between government and private industry on
                  Safety                                                     Such use will help combat the increasing scarcity          AV development, so this year’s AVRI adds a new measure           Insurance may see particularly big changes. A 2014
                                                                             and cost of drivers in some countries, with the            assessing this.                                                  actuarial analysis by KPMG in the US suggested that the
                  1.35 million people were killed on the world’s roads       median salary for an American driver on a national,                                                                         personal automotive insurance sector could shrink by
                  in 2016, up from 1.25 million in 2013, according           irregular route having risen 15 percent since 2013.7       As well as making more efficient use of roads, AVs are likely    40 percent within 25 years, with the number of accidents
                  to the World Health Organization,2 with studies
                                                                                                                                        to change city landscapes — although this might take different   per vehicle dropping by 80 percent.11 In 2017, the Bank of
                  suggesting that human error causes at least                As a possible result, some fear a rapid disappearance      directions depending on how usage develops. If AVs lead to       England predicted a fall in motor insurance premiums of
                  nine in 10 accidents.3 Removing human error risk           of driving jobs, which are a major source of               less car ownership, less urban space will be needed for roads,   21–41 percent by 2040.12
                  by moving to AVs should therefore deliver an               employment with 4.8 million people in the 28               parking and garaging, potentially allowing higher population
                  enormous reduction in vehicle-related deaths —             European Union (EU) countries alone.8 However,                                                                              There are many uncertainties over the effects of AVs,
                                                                                                                                        densities and more green space. If people prefer to own AVs
                  something that is important to remember, in light of       there are reasons to expect that the replacement of                                                                         both in time-scale, degree and direction. What does
                                                                                                                                        then they may choose to live further from work, leading to
                  the first death caused by the testing of AVs, as well      professional drivers with technology will be gradual,                                                                       seem certain is that a wide range of organizations, both
                                                                                                                                        more low-density suburbs, more road traffic and a need for
                  as one from the use of a partially autonomous car,         with software initially taking over some elements of                                                                        government and private-sector, will be profoundly changed
                                                                                                                                        daytime parking for their AVs, although this could be on the
                  in 2018.4                                                  driving but with people still required for the likes of                                                                     by their adoption. For the countries that can manage these
                                                                                                                                        edge of cities rather than next to offices.10
                                                                             close maneuvering.                                                                                                          changes, AVs offer benefits on safety, efficient road-use,
                  Vehicle makers looking to reassure the public
                                                                                                                                                                                                         better public and freight transport, and the chance to
                  about AVs could follow the aviation industry,
                                                                             The future of cities                                       Insurance and other industries                                   reshape cities around humans rather than vehicles. As
                  where aircraft makers have embedded safety in                                                                         AVs will have effects far beyond the road transport sector,      the results of the second edition of the AVRI show, some
                  their processes. Airlines share information and            AVs should lead to much cleaner and efficient use          not least because almost every organization makes use of         countries are already well on their way.
                  learn from accidents on a no-blame basis. Modern           of roads, as well as making them safer. Much of
                  passenger aircraft are regularly flown by autopilot        this will result from the shift from fossil fuels to
                  software, albeit with the supervision of human             electric vehicles (EVs), with most AVs expected to
                  pilots — and in 2017, there were no fatalities at all in   run on electricity. In September 2018, the United
                  commercial passenger jets.5                                Kingdom joined Canada, China, Finland, France,               Examples of how AVs may affect specific industries
                                                                             India, Japan, Mexico, the Netherlands, Norway
                                                                                                                                          —— Policing: fewer resources may be needed to police roads with AVs programmed to obey traffic laws.
                  Public transport and freight                               and Sweden in pledging that at least 30 percent of
                                                                             new vehicles sold will be EVs by 2030.9 Norway
                  Despite the focus on when driverless cars will                                                                          —— Healthcare: fewer traffic accidents may mean less demand for emergency surgery and fewer organ donors. AVs
                                                                             has already exceeded this target, and enters the
                  be available, autonomous minibuses are already                                                                             may make it easier for older and infirm people to travel to appointments, allowing greater centralization of services.
                                                                             AVRI this year in third place, partly as a result of its
                  providing passenger services in countries including        advanced adoption of EVs.                                    —— Air and rail: fewer passengers on some routes if AVs allow users to relax or sleep their way to long-distance
                  Norway, Sweden and France, and AVs are likely to
                  be as important in transforming public transport as        One of the greatest benefits in efficient road use
                  they will be for private cars. They will allow public      will come from public authorities being able to track        —— Media and advertising: AV users freed from driving could turn their attention from audio to video, written word and
                  transport providers to move from fixed-route,              and optimize the flow of vehicles. This will require            social media; advertising could be targeted by location, potentially subsidizing the cost of travel.
                  fixed-timetable bus services to on-demand                  standardized protocols to allow data to travel to and
                  autonomous alternatives, which would efficiently           from vehicles. To comply with privacy laws such as           —— Power generation: EVs including AVs, will increase demand, but ability to choose when to charge at home could
                  and effectively take people from door to door.             the EU’s General Data Protection Regulation, which              boost variable-output renewable power.

                                                                                                                                          —— Power grids: home charging will require strengthened local grids, but smart control of when to charge as well as
                                                                                                                                             use of plugged-in vehicles as batteries could smooth demand.

6   2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                 2019 Autonomous Vehicles Readiness Index    7
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
2018 milestones
Norway legalizes testing of
AVs on public roads, with                        February:
driverless minibus services                      Chinese government allows first official
starting in several locations                    tests of AVs on public roads.14
later in the year.13                             German coalition government agreement
                                                 includes plans to legislate for AVs by 2021.

                                                              Dutch infrastructure minister announces legal framework
                                                              for AVs, including equivalent of driving license for
                                                              self-driving vehicles and work on truck platooning.15
                                                              Death of pedestrian in Arizona in the United States (US)
                                                              during an AV trial.16

                                                                                    California Department of Motor Vehicles
                                                                                    lifts requirement that AVs must have a
                                                                                    human driver to take over in

                                                                                                       European Commission transport
                                                                                                       commissioner announces plans for
                                                                                                       European rules governing AVs and
                                                                                                       investment in road and telecoms

                                                                                                                              Japanese government plans to
                                                                                                                              start tests of AVs on public
                                                                                                                              roads with goal of offering
                                                                                                                              self-driving car service for 2020
                                                                                                                              Tokyo Olympics.19

                                Ford creates new AV division with
                                plan to invest US$4 billion by 2023.20
                                Uber ends development of                                                                                  August:
                                self-driving trucks to focus on cars.21                                                                   UK Parliament passes
                                                                                                                                          legislation meaning
                                                                                                                                          insurers will be liable
                                                                                                                                          for damage caused by
                                                                                                                                          AVs when in
                                                                                                                                          self-driving mode.22
                Waymo starts charging passengers in
                                                                                                                                          Russian company
                Phoenix, Arizona, for rides in its AVs.24
                                                                                                                                          Yandex launches what
                Australian government establishes an
                                                                                                                                          it claims is the first
                Office of Future Transport Technologies
                to prepare for AVs.25
                                                                                                                                          ride-hailing service in
                                                                                                                                          Europe, in Innopolis,
                                                                                                                                          and later in Skolkovo.23
A Swedish start-up and
German logistics
company announce they                                                                                                            November:
expect regulatory                                                                                                                Ford, Walmart and
approval shortly to run                                                                                                          delivery start-up
driverless trucks on                                                                                                             Postmates announce
public roads.27                                                                                                                  US trial using AVs to
                                                                                                                                 deliver groceries.26

8     2019 Autonomous Vehicles Readiness Index                                                                                                                       2019 Autonomous Vehicles Readiness Index   9
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
Executive summary
                              This edition of the AVRI assesses 25 countries on 25 different variables, organized into four pillars.      Also noted                                      Key insights for governments
                              Four of the variables are scored for this index by KPMG International and ESI ThoughtLab; one uses
     Methodology              a consumer survey conducted for this report; and the rest use existing research by KPMG and
                              other organizations. Full details are in the Appendix.                                                   — A new measure on government data                      Advanced AV markets could invest more in
                                                                                                                                         sharing, reflecting the importance of this in         technology and innovation:
                                                                                                                                         the development of AVs, is led by the UK
                                                                                                                                         (7th overall).                                  Top ranked countries could far outpace others if they
                                                                                                                                                                                         focused on Pillar 2 (technology and innovation); in particular,
The Netherlands                   Page 14                             Singapore            Page 15                                     — Several countries enjoy a dynamic business
                                                                                                                                                                                         investing in AV-related firms and R&D, industry
— The AVRI’s leading country is working with neighbors                — With a leading university, Singapore has created a test          ecosystem with a focus on AVs, but Israel
                                                                                                                                         (14th overall) gains top scores in the AVRI’s   partnerships, and an innovation-friendly business
  to adopt AV technology for freight, with a plan to                    town for driverless vehicles complete with traffic lights,
  launch platoons of more than 100 driverless trucks on                 bus stops, skyscrapers and a rain machine to recreate            technology and innovation pillar through the    environment.
  major routes from Amsterdam to Antwerp and                            its extremely wet tropical weather.                              outstanding performance of its sector.
  Rotterdam to the Ruhr valley.                                       — Next year, it will introduce self-driving minibuses in         — The AVRI’s newly introduced consumer
— It is introducing new laws that will encourage AVs,                   several areas, including a university campus — an                survey measuring enthusiasm for AVs is led
  something also pursued by the UK, Australia and                       approach already taken in Norway and France.                     by India (24th overall) and Mexico (23rd              Countries leading in technology and innovation
  France among others.                                                — Singapore, along with Hungary, leads a specific                  overall), suggesting that countries currently         could work on achieving greater policy and
— The Dutch government is taking an active role in AV                   measure on having a single government organization               lacking good road transport may be                    institutional clarity:
  safety and legal issues, with the infrastructure                      that deals with AVs, which improves AV coordination              particularly keen to adopt AVs.
  minister announcing a ‘driving license’ for self-driving              and reduces confusion around who does what.                                                                      Countries that lead in technology and innovation tend to
  cars in a March speech.                                                                                                                                                                have mid-level scores in their AV regulatory environment
                                                                                                                                                                                         and institutions. Adapting and revisiting regulations and
                                                                                                                                                                                         establishing an AV-focused institution could take these
                                                                                                                                                                                         countries to the top of the rankings.

                                                                                                                                                                                               Most countries that do well on infrastructure
                                                                                                                                                                                               readiness could reform their policy and
                                                                                                                                                                                               legislative environment:
                                                                                                                                                                                         Six of the 10 countries that lead the world on infrastructure
                                                                                                                                                                                         readiness — Australia, Austria, Japan, South Korea,
                                                                                                                                                                                         Sweden, and the UAE — do not feature in the top 10 for
                    01                                02                               03                                 04                              05                             the policy/legislative environment. To improve their overall
                                                                                                                                                                                         ranking they could work on establishing new AV
                                                                                                                                                                                         regulations and institutions.

                                                                                                                                                                                               Less-developed AV markets could take advantage
                                                                                                                                                                                               of higher consumer interest in AVs if other areas,
Norway           Page 16                                                                   United States                Page 17             Sweden           Page 18
                                                                                                                                                                                               including policy and technology, are addressed:
— The country legalized AV testing on public roads in                                      — Individual states including Ohio,              — The country’s cutting-edge work            In general countries with the lowest overall scores have
  January 2018, giving clarity for providers and leading to                                  Michigan and Massachusetts are                   on freight includes a road that
                                                                                                                                                                                         the highest scores for positive consumer sentiment about
  trial bus services in several locations.                                                   working to encourage AV                          charges electric trucks as they
                                                                                             development and adoption by                      drive over it and pilot use of an          AVs. These countries would rise quickly in the rankings if
— As a result of significant tax breaks, 40 percent of new
  cars sold in Norway are electric, many having some                                         opening access to roads and                      AV truck to link two logistics             governments actively developed other pillars.
  autonomous functionality.                                                                  setting up a single coordinating                 centers.

10    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                    2019 Autonomous Vehicles Readiness Index   11
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
                                                Policy and    Technology and   Infrastructure   Consumer
                                                legislation     innovation                      acceptance

12   2019 Autonomous Vehicles Readiness Index                                                          2019 Autonomous Vehicles Readiness Index   13
2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
1 The Netherlands                                                                                                                                     2 Singapore
     Policy and
     legislation         5            Technology and
                                      innovation           10            Infrastructure
                                                                                             1               Consumer
                                                                                                             acceptance                  2               Policy and
                                                                                                                                                         legislation           1           Technology and
                                                                                                                                                                                           innovation         15             Infrastructure
                                                                                                                                                                                                                                                 2              Consumer
                                                                                                                                                                                                                                                                acceptance               1

The Netherlands retains its                      of self-driving vehicles) was approved      Electric vehicle charging stations —                     The government is                             “The government is very proactive in         AV department within government —
                                                 by the House of Representatives in          score by country (top 5)                                                                               thinking about the future of mobility.       score by country (top 5)
lead by doing many things                        April 2018 and the Dutch Senate in                                                                   positioning the city-state as                 It is seriously investigating the
                                                                                             The Netherlands                                                                                                                                     Singapore
consistently well, including                     September 2018. It allows experiments                                                         1.00   a center for AV development                   possibilities as well as preparing for                                                       1.00
investigating AVs’ use in                        with AVs on public roads without drivers    Norway                                                   with the deployment of a                      a regulatory environment that will           Hungary
                                                 in vehicles, although they must be                                    0.52                                                                         facilitate a future that is autonomous,”                                                     1.00
freight and logistics and                        monitored remotely.29                       South Korea
                                                                                                                                                      simulated urban test-bed                      says Satya Ramamurthy, Partner, Head         Austria
passing new legislation.                                                                                 0.26                                         and plans for driverless                      of Infrastructure, Government and                                                         0.93
                                                 The Netherlands are also preparing a                                                                                                               Healthcare, KPMG in Singapore.
The Netherlands, which again                     Driving License for a Vehicle. This is
                                                                                             China                                                    buses.                                                                                     New Zealand
                                                                                                       0.22                                                                                                                                                                                   0.93
leads the AVRI, is an example of                 being developed in cooperation between                                                                                                             Singapore ranks relatively low
                                                                                             Germany                                                  Singapore leads the policy and                                                             United Arab Emirates
how to ready a country for AVs by                the Dutch Vehicle Authority (RDW), the                                                                                                             on technology and innovation,
                                                                                                    0.16                                              legislation and consumer acceptance                                                                                                     0.93
performing strongly in many areas.               main road authority (Rijkswaterstaat)                                                                                                              at 15th of 25. UK-founded home
                                                                                             Source: International Energy Agency, 2017                pillars, and is second only to the                                                         Source: KPMG International, 2019
It leads the index’s infrastructure              and the central office for driving exams                                                                                                           appliances manufacturer Dyson
                                                                                                                                                      Netherlands on infrastructure. Its
pillar, is ranked second on consumer             (CBR). The approach focuses on the                                                                                                                 recently announced it would open
                                                                                                                                                      government is working hard to
acceptance and is fifth on policy and            extent to which a vehicle can produce       Consumer adoption of latest                                                                            a new factory in Singapore to build
                                                                                                                                                      consolidate the city-state’s position as                                                   Availability of high-performance mobile
legislation. The country also scores             safe and predictable automated              technology — score by country (top 5)                                                                  electric cars in 2021, as well as            internet — score by country (top 5)
                                                                                                                                                      a center for AVs. It opened the Centre
highly on many individual measures,              driving behavior that aligns as closely                                                                                                            moving its corporate office to the
                                                                                             The Netherlands                                          of Excellence for Testing and Research                                                     Singapore
including supportive regulations, road           as possible to human performance                                                                                                                   city-state, although much research
                                                                                                                                              1.00    of Autonomous Vehicles at Nanyang                                                                                                          1.00
infrastructure quality, exposure to AV           in an open traffic system. Finally, the                                                                                                            and development work will stay
                                                                                             Sweden                                                   Technological University (Cetran) in                                                       Norway
testing and market share of EVs.                 Netherlands are working on a “Vehicle                                                                                                              in Britain.33 Ramamurthy says
                                                                                                                                             0.97     November 2017,31 which includes bus                                                                                                  0.89
                                                 Safety & Security Framework (VSSF)”                                                                                                                Singapore’s lack of conventional
This balanced approach is shown in                                                           United States                                            stops, traffic lights, skyscrapers, hills                                                  Australia
                                                 to be able to assess the robustness of                                                                                                             automotive manufacturing may prove
the way the Dutch government is                                                                                                              0.97     and a rain-making machine to allow                                                                                                 0.86
                                                 in-vehicle software.                                                                                                                               to be a strength in developing EVs
considering the potential to use AVs in
                                                                                             United Kingdom                                           realistic testing. The government is                                                       New Zealand
                                                                                                                                                                                                    and AVs, as they use a substantially
freight, while working to improve safety         As well as freight and private cars,                                                        0.96     drawing on this facility in setting new                                                                                           0.82
                                                                                             Singapore                                                                                              different set of components. He adds
and enhancing the legal framework.               Dutch companies are working on                                                                       road traffic rules, which are due to be                                                    Finland
                                                                                                                                         0.92                                                       that the relatively low number of
                                                 the potential for AVs in private                                                                     published by early 2019.                                                                                                         0.80
                                                                                                                                                                                                    electric charging points is presently
On freight, it plans to have dozens of           industrial environments with foreign        Source: World Economic Forum, Global Competitive                                                                                                    Source: GSMA Global Connectivity Index, 2017
                                                                                             Index 2018                                               Singapore has also announced that             a weakness, but that electricity
driverless delivery trucks operating closely     manufacturing and logistics firms.30 Such
                                                                                                                                                      three areas, Punggol, Tengah and              providers and others are planning to
together on international highways. In a         uses may precede AVs on urban Dutch
                                                                                                                                                      the Jurong Innovation District, will          install more of these.
March 2018 speech, Dutch infrastructure          roads, which are much busier than in the          he Netherlands is
                                                                                                  T                                                   use driverless buses and shuttles for
                                                                                                                                                                                                                                                      he government is very
minister Cora van Nieuwenhuizen said             US and other countries: “We have a lot           spreading its AV bets                                                                             Singapore taxes private cars heavily,            proactive in thinking about
the country will work with Germany                                                                                                                    off-peak and on-demand commuting
                                                 of bicycles,” points out Stijn de Groen,                                                                                                           which provides a way to promote
and Belgium to introduce ‘truck                  Manager Digital Advisory, Executive for
                                                                                                  across projects including                           from 2022, and it is working with
                                                                                                                                                                                                    AVs — at a cost. “Effectively the
                                                                                                                                                                                                                                                     the future of mobility. It
platooning’ along the ‘Tulip corridors’ from     Automotive, KPMG in the Netherlands.             truck platooning pilots,                            the Netherlands on an international
                                                                                                                                                                                                    pricing is done to discourage people             is seriously investigating
                                                                                                                                                      standard for AVs. In November 2018, a
Amsterdam to Antwerp and Rotterdam to            “In urban, crowded areas it will be very         public transport in                                 bus operator announced a year-long trial
                                                                                                                                                                                                    from driving,” says Ramamurthy.                  the possibilities as well as
the Ruhr valley, with the aim of enabling
convoys of at least 100 trucks and
                                                 difficult to start autonomous driving.”          airports and transporting                           of a self-driving shuttle service at the
                                                                                                                                                                                                    “That brings with it a whole set of              preparing for a regulatory
                                                 As a result, it may make more sense to                                                                                                             opportunities.” At present, around
eventually self-driving vehicles at night.28     keep transport modes separate rather
                                                                                                  containers in harbors.                              National University of Singapore’s Kent
                                                                                                                                                                                                    two-thirds of the price of a car is tax.
                                                                                                                                                                                                                                                     environment that will
                                                                                                                                                      Ridge campus, starting in March 2019
She also said that she would work to             than integrating AVs to work there.                                                                                                                “There is a lot of policy room for the           facilitate a future that is
connect vehicles using 5G technology                                                                                     — Loek Kramer                and operating on actual roads, although
                                                                                                             Sector Lead for Automotive,              it will only carry passengers after initial
                                                                                                                                                                                                    government to do things to promote               autonomous.
and install 1,200 smart traffic lights.          “The Netherlands is spreading its AV                                                                                                               adoption, should it wish,” he says.
This would build on the Netherlands’             bets across projects including truck                          KPMG in the Netherlands                tests are complete.32
                                                                                                                                                                                                                                                                 — Satya Ramamurthy
existing leading status on availability of       platooning pilots, public transport in                                                  Bio                                                                                                                 Partner, Head of Infrastructure,
EV charging stations, something also             airports and transporting containers                                                                                                                                                                          Government and Healthcare,
recognized in this index.                        in harbors,” adds Loek Kramer, Sector                                                                                                                                                                                  KPMG in Singapore
                                                 Lead for Automotive, KPMG in the
The ministry also announced a legal              Netherlands, summing up the Dutch                                                                                                                                                                                                         Bio
framework for autonomous driving.                approach of looking for opportunities
The Experimenteerwet zelfrijdende auto           to use AVs across road transport,
(law governing the experimental use              rather than just for cars.

14    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                                 2019 Autonomous Vehicles Readiness Index           15
3 Norway                                                                                                                                              4 United States
     Policy and
     legislation         7            Technology and
                                      innovation             2           Infrastructure
                                                                                            7               Consumer
                                                                                                            acceptance                3                  Policy and
                                                                                                                                                         legislation          9            Technology and
                                                                                                                                                                                           innovation          3             Infrastructure
                                                                                                                                                                                                                                                     8               Consumer
                                                                                                                                                                                                                                                                     acceptance             6

Following the legalization                       2019. Norway has a specialist supplier     Availability of the latest technologies —                 The US is home to                            advantage for suppliers according to              Capacity for innovation — score by
                                                 in this area, Applied Autonomy.38 Such     score by country (top 5)                                                                               Ted Hamer, Managing Director and                  country (top 5)
of AV testing in January,                        work is reflected in Norway’s strong       Finland                                                   the world’s leading AV                       Head of Mobility, KPMG in the US. “If             United States
several cities now have                          performances in both the technology                                                           1.00   companies and a lot of                       one state is really tight in its restrictions                                                     1.00
                                                 and innovation pillar, where it is         Norway                                                                                                 and another isn’t, you have the ability           Israel
driverless minibus services                                                                                                                   0.97
                                                                                                                                                      testing work, but the lack of                                                                                                                 0.97
                                                 second, and consumer acceptance,                                                                                                                  to adapt and to move around,” he says,
and Norway is also working                       where it is third.                         Israel                                                    a strong national approach                   whether for testing, manufacturing                Sweden
on truck platooning.                                                                                                                         0.95     means individual states                      or deployment. Arizona had broader                                                         0.90
                                                 Ståle Hagen, Director, Head of             Sweden                                                                                                 rules on AVs, leading to it being used            Germany
On 1 January 2018, Norway legalized              Transport and Mobility, KPMG in                                                             0.94
                                                                                                                                                      have to work hard to attract                 for several pilot projects, although it                                                    0.90
AV testing on public roads,34 and                Norway, says the bus tests involve         United States                                             AV businesses.                               has tightened these since the Uber                The Netherlands
operators have started small-scale               a variety of environments, including                                                    0.93                                                      accident in May.                                                                         0.86
autonomous bus services as a                     business parks, urban streets and          Source: World Economic Forum Networked Readiness          The United States (US) is home to                                                              Source: World Economic Forum Networked Readiness
result. In May, a Stavanger transport            even a service from a shopping center      Index, 2018                                               companies that lead the world in AV          Hamer adds that some states do                    Index, 2018

provider gained the right to run                 to a beach.39 “The feedback on AV                                                                    development, while the country’s             an excellent job of supporting AV
driverless minibuses, and from June              technology has been quite positive.        Market share of electric cars — score by                  mainstream vehicle makers are                development in a joined-up fashion,               Efficiency of legal system in challenging
to December 2018 it ran a free service           Passengers are not afraid of using this    country (top 5)                                           working hard to establish AV fleet and       in the way some countries do at                   regulations — score by country (top 5)
in Forus.35 However, initial regulations         kind of transport,” he says. Familiarity                                                             ride-hailing services. This contributes      national level. In May 2018, Ohio’s               Finland
meant there was always an employee               is developing for another reason: “Fifty                                                      1.00
                                                                                                                                                      to strong US performance in the              outgoing governor John Kasich                                                                     1.00
on-board who could apply a brake,                percent of all the cars sold in the Oslo                                                             technology and innovation pillar, where      signed an executive order opening AV              United States
only six passengers were allowed                 region are now electric and these cars           0.16
                                                                                                                                                      it is third. It moves from third to fourth   testing on the state’s roads, one of                                                             0.99
and the maximum speed was 7.5mph                 are prepared for autonomous driving.”                                                                overall as a result of Norway joining        a number of projects coordinated by               New Zealand
                                                                                            The Netherlands
(12kph).36                                                                                     0.07
                                                                                                                                                      the AVRI, and scores less well on            DriveOhio, a one-stop shop launched                                                       0.87
                                                 Norway has by far the highest market                                                                 infrastructure, where it is eighth, and      in March.41 The Michigan Economic                 Germany
Ruter, the mass transit provider for             penetration of EVs in the index,              0.06
                                                                                                                                                      policy and legislation, where it is ninth.   Development Corporation has taken                                                         0.87
Oslo, announced in October 2018                  contributing to its second place in        United Kingdom                                                                                         advantage of the state being home to              The Netherlands
it is starting similar tests with a              the technology and innovation pillar.                                                                The US Department of Transportation
                                                                                               0.04                                                                                                the biggest vehicle manufacturers,42                                                     0.84
Danish company, with the aim of                  Ketil Marcussen, Partner, Infrastructure                                                             published Automated vehicles 3.0
                                                                                            Source: International Energy Agency, Global EV
                                                                                                                                                                                                   while Massachusetts has successfully              Source: World Economic Forum Networked Readiness
having 50 such minibuses in use                  Sector, KPMG Norway, says this is due                                                                detailing its approach to AVs in October                                                       Index, 2018
                                                                                            outlook 2018.                                                                                          encouraged adoption of EVs through a
by 2021.37 Elsewhere, the national               to generous tax breaks, exemptions                                                                   2018.40 The report’s principles include
                                                                                                                                                                                                   2017 law.43
road administration has been testing             from road tolls and parking charges,                                                                 prioritizing safety; remaining technology
automated truck platooning in the                access to bus lanes, free charging               he feedback on AV
                                                                                                 T                                                    neutral; preparing for automation            The Virginia Department of                              here is recognition
north of Norway, and pilots of                   stations and the country’s cheap                technology has been                                  through guidance and pilot programs;         Transportation's (VDOT) also launched                  that states have to start
autonomous taxis are set to start in             home electricity.                                                                                    and protecting and enhancing freedoms        program to help guide the department
                                                                                                 quite positive. Passengers                           enjoyed by Americans — such as               in the deployment of AV related
                                                                                                                                                                                                                                                          laying the groundwork
                                                                                                 are not afraid of using this                         driving their own vehicles, emphasizing      technologies and initiatives.44                        for connected vehicles
                                                                                                 kind of transport. Fifty                             that AVs will operate alongside human-                                                              and the infrastructure
                                                                                                                                                      driven motorized vehicles and other          He adds that a year ago, many states
                                                                                                 percent of all the cars                              road users.                                  were focused on attracting AV testing
                                                                                                                                                                                                                                                          that underlies them, and
                                                                                                 sold in the Oslo region are                                                                       work, but this has developed: “There                   understand where AVs
                                                                                                 now electric and these                               The document also says the                   is recognition that states have to start               are going to be deployed,
                                                                                                                                                      department “will encourage a                 laying the groundwork for connected
                                                                                                 cars are prepared for                                consistent regulatory and operational
                                                                                                                                                                                                                                                          whether it’s urban
                                                                                                                                                                                                   vehicles and the infrastructure that
                                                                                                 autonomous driving.                                  environment” across the US.                  underlies them, and understand where                   environments or more in
                                                                                                                                                      However, states and cities have              AVs are going to be deployed, whether                  freight and logistics.
                                                                                                                         — Ståle Hagen                significant control of transport work,       it’s urban environments or more in
                                                                                                                               Director,              and differences in approach can be an        freight and logistics.”                                                         — Ted Hamer
                                                                                                         Head of Transport and Mobility,                                                                                                                                  Managing Director and
                                                                                                                      KPMG in Norway                                                                                                                                          Head of Mobility,
                                                                                                                                        Bio                                                                                                                                    KPMG in the US

16    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                                     2019 Autonomous Vehicles Readiness Index          17
5 Sweden                                                                                                                                              6 Finland
     Policy and
     legislation     10               Technology and
                                      innovation             6           Infrastructure
                                                                                            6               Consumer
                                                                                                            acceptance                4                  Policy and
                                                                                                                                                         legislation         4            Technology and
                                                                                                                                                                                          innovation        8            Infrastructure
                                                                                                                                                                                                                                             11                Consumer
                                                                                                                                                                                                                                                               acceptance             5

Sweden trials electric-                          gave Swedish vehicle maker Volvo           People and civil society adoption of new                  Finland is focusing on                    driverless bus services in 2021.52             Efficiency of legal system in challenging
                                                 permission to begin real-world tests of    technologies — score by country (top 5)                                                             Meanwhile, local AV company Sensible 4         regulations — score by country (top 5)
charging roads, AV trucks                        its self-driving cars in the Gothenburg                                                              getting AVs to work in                    is developing automated minibuses that         Finland
and driverless buses, while                      area.47 AV truck maker Einride and                                                            1.00   winter conditions and                     work in harsh Finnish winters. It recently                                                     1.00
working on revamped                              German logistics group DB Schenker         The Netherlands                                           automated bus services —                  partnered with Japanese designer Muji          United States
                                                 have been piloting use of a 7.5 tonne                                                      0.99                                                to develop Gacha, an all-weather AV bus                                                       0.99
legislation for 2019.                            electric AV truck between two logistics    Norway
                                                                                                                                                      and is repainting the yellow              that also aims to look elegant.53              New Zealand

In April 2018, Sweden opened what
                                                 centers since November 2018, and                                                          0.96       lines on its roads to an AV-                                                                                                     0.87
                                                 hope to gain regulatory approval for its                                                                                                       Finland, a new entrant to the AVRI,            Germany
is believed to be the world’s first
                                                 use on public roads in January.48
                                                                                            Germany                                                   friendly white.                           scores well on having supportive                                                       0.87
electric-charging road, a 2km stretch                                                                                                     0.93
                                                                                                                                                                                                regulations, its judicial system, the          The Netherlands
near Arlanda airport. An electric truck                                                     United Kingdom                                            Finland is exploiting its cold climate
                                                 “There is a positive tone from law-                                                                                                            number of AV companies and the                                                        0.84
belonging to PostNord, the Swedish-                                                                                                      0.92         through research on how AVs can
                                                 makers and policy-makers in Sweden.”                                                                                                           availability of the latest technologies,       Source: World Economic Forum Networked Readiness
Danish postal company, uses it to                                                           Source: KPMG International, 2019                          handle icy roads and tracks. In
                                                 says Christoffer Sellberg, Head of                                                                                                             although it is among the lowest for            Index, 2018
recharge automatically while moving                                                                                                                   December 2017, government research
                                                 Automotive, KPMG in Sweden “They                                                                                                               investments. “Finland has a positive legal
between the airport and a logistics                                                                                                                   organization VTT showed its robot
                                                 believe that AVs will improve traffic      Infrastructure quality for logistics and                                                            and regulatory environment. The traffic        Availability of the latest technologies —
center 12km away. The road joins                                                                                                                      car Martti driving autonomously on a
                                                 safety, contribute to the efficiency of    trucking — score by country (top 5)                                                                 safety authority is quite permissive,          score by country (top 5)
another recharging pilot, which uses                                                                                                                  snow-covered road, and the project
                                                 the transportation system and be a part                                                                                                        granting permits for trials to anyone who      Finland
overhead cables on a motorway near                                                          Germany                                                   team has since added 5G technology
                                                 of Sweden’s sustainable perspective.                                                          1.00                                             is interested in experimenting with AVs,”                                                      1.00
Gävle, both supported by the Swedish                                                                                                                  to the vehicle.49 Future work will
                                                 However, the legislation needs to be                                                                                                           says Henry Beniard, Global Strategy            Norway
Transport Agency.45                                                                         Japan                                                     include off-road driving on tracks and
                                                 further adopted to facilitate a gradual                                                  0.93                                                  Group, KPMG in Finland. “The entire road                                                      0.97
                                                                                                                                                      at night. Other research includes
                                                 introduction of automated vehicles.”       Sweden                                                                                              network is available for experimentation.”     Israel
Sweden is second only to Norway in                                                                                                                    Swedish truck maker Scania trialing
                                                                                                                                         0.92                                                                                                                                                0.95
adopting EVs, which means developing             He adds that Sweden’s reputation                                                                     truck platooning in icy conditions,       He adds that the government has
                                                                                            The Netherlands                                                                                                                                    Sweden
infrastructure that will be used by AVs.         for innovative technology is a major                                                                 and a 5G network established in the       recently passed two new laws that
                                                                                                                                        0.90                                                                                                                                                 0.94
But its government is also undertaking           strength. Sweden’s road and mobile                                                                   northern town of Oulo that allows         enable AVs. The Transport Service Law
                                                                                            Austria                                                                                                                                            United States
direct measures, proposing legislative           infrastructure networks also add                                                                     organizations including VTT to test       opens taxis to competition, allowing
                                                                                                                                        0.88                                                                                                                                              0.93
changes, likely in July 2019, that will          to the country’s strength. These                                                                     applications such as AVs.50               ride-hailing services to gain access           Source: World Economic Forum Networked Readiness
open up for driverless trials for certain        factors contribute to Sweden’s high
                                                                                            Source: World Bank Logistics Performance Index, 2018
                                                                                                                                                                                                from 2020, and permits someone                 Index, 2018
class of vehicles (Class II).                                                                                                                         Driverless minibuses are a priority
                                                 placement in this year’s Autonomous                                                                                                            to control a vehicle remotely.54 The
                                                                                                                                                      in Finland, with Helsinki’s transport
                                                 Vehicle Readiness Index (AVRI); with                                                                                                           Road Traffic Act will integrate detailed
The transport agency has already                                                                                                                      authority having run trials since 2015,
permitted small-scale AV pilots. These
                                                 Sweden among the highest-rated for              here is a positive tone from
                                                                                                T                                                     when it introduced a free, temporary
                                                                                                                                                                                                location data on roads, signs, traffic               inland has a positive
include a driverless bus service which
                                                 government readiness for change,               law-makers and policy-makers                          service from a train station.51 In May
                                                                                                                                                                                                lights and other control mechanisms                 legal and regulatory
                                                 AV company headquarters, capacity                                                                                                              for AV operators to use, and is set to
started running on 1.5 kilometer section
                                                 for innovation, road infrastructure for
                                                                                                in Sweden. They believe that                          2018, the city introduced a regular
                                                                                                                                                                                                repaint the continuous yellow lines on
                                                                                                                                                                                                                                                    environment. The traffic
of public road in northern Stockholm                                                            AVs will improve traffic safety,                      ‘Robobus’ service running on public                                                           safety authority is quite
                                                 logistics, civil society technology use                                                                                                        Finnish roads in white, partly as these
in January 2018, which is free to use                                                                                                                 roads on a trial basis, with a non-
and has an emergency human driver.46
                                                 and consumer adoption of technology.           contribute to the efficiency                          driving human operator. It plans
                                                                                                                                                                                                are easier for machines to detect.55                permissive, granting
In September 2018, the agency                                                                   of the transportation system                          to introduce commercially viable                                                              permits for trials to
                                                                                                and be a part of Sweden’s                                                                                                                           anyone who is interested
                                                                                                sustainable perspective.                                                                                                                            in experimenting with
                                                                                                However, the legislation                                                                                                                            AVs. The entire road
                                                                                                needs to be further adopted                                                                                                                         network is available for
                                                                                                to facilitate a gradual                                                                                                                             experimentation.
                                                                                                introduction of automated
                                                                                                                                                                                                                                                                       — Henry Beniard
                                                                                                vehicles”.                                                                                                                                                           Global Strategy Group,
                                                                                                                                                                                                                                                                          KPMG in Finland
                                                                                                                — Christoffer Sellberg
                                                                                                                         Head of Automotive,                                                                                                                                            Bio
                                                                                                                           KPMG in Sweden
18    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                               2019 Autonomous Vehicles Readiness Index          19
7 United Kingdom                                                                                                                                        8 Germany
     Policy and
     legislation         2            Technology and
                                      innovation             9            Infrastructure
                                                                                               12              Consumer
                                                                                                               acceptance           10                     Policy and
                                                                                                                                                           legislation           6            Technology and
                                                                                                                                                                                              innovation           4            Infrastructure
                                                                                                                                                                                                                                                 13                    Consumer
                                                                                                                                                                                                                                                                       acceptance         13

Supportive legislation and an                    and world-leading policy; it has seen         Data sharing and open data                               Germany has a national                         Transport and Digital Infrastructure.           AV-related industry partnerships —
                                                 many positive announcements regarding         environment — score by country (top 5)                                                                  “This includes working closely with             score by country (top 5)
increasingly coordinated national                both private sector initiatives and local                                                              strategy for AVs and plans                     automotive and IT sectors as well as
                                                                                               United Kingdom                                                                                                                                          Germany
strategy address key barriers.                   and central government strategies,” says                                                        1.00   for using them ethically but                   universities and research institutions.                                                          1.00
Public trials are ramping up.                    Sarah Owen-Vandersluis, Partner, Head         Canada                                                   its federated structure, which                 The legal requirements for the use of           Israel
                                                 of Public Mobility Strategy, KPMG in                                                  0.87                                                            the first highly automated and fully
Infrastructure presents an                       the UK. “In both the public and private       France
                                                                                                                                                        can spur innovation in regions,                automated driving functions for regular         Canada

opportunity for improvement.                     sectors, the pace and scale of activity                                             0.81               may threaten consistency at                    operation in road transport have been                                                            1.00
                                                 is rapidly increasing. New initiatives and                                                                                                            in place since 2017. Germany is thus a
The United Kingdom (UK) continues to
                                                 collaborations are beginning to identify
                                                                                               United States                                            the country level.                             global pioneer.”
                                                                                                                                                                                                                                                       South Korea
                                                                                                                                    0.77                                                                                                                                                                1.00
be a leader on policy and legislation and
                                                 benefits like improved accessibility,         South Korea                                              Since 2015, the German government has                                                          United States
performs well across a number of sub-                                                                                                                                                                  Several of Germany’s powerful states
                                                 productivity, safety and economic growth,                                          0.77                followed a national AV strategy and has                                                                                                         1.00
pillars. However, it needs to continue                                                                                                                                                                 are also working on AVs. North Rhine-
                                                 and prove the commerciality of new            Source: Open Data Barometer, 2018                        recently started working to ensure that                                                        Source: KPMG International, 2019
proactive efforts to address the critical                                                                                                                                                              Westphalia, which includes Cologne
                                                 business models.”                                                                                      AVs are used ethically, including protecting
factors of infrastructure and consumer                                                                                                                                                                 and Düsseldorf, has established
acceptance. The UK has moved down                The UK faces challenges concerning                                                                     people rather than property or animals.61
                                                                                               Consumer adoption of online ride-hailing                                                                a Zukunftsnetz Mobilität (future                AV-related patents (per capita) — score
two places in 2019, but only due to              digital and physical infrastructure,                                                                   “Last year, the Federal Government
                                                                                               apps — score by country (top 5)                                                                         of mobility) network to support                 by country (top 5)
high-performers Norway and Finland               especially since investments in this                                                                   passed an action plan on the report by an
                                                                                                                                                                                                       municipalities,64 with the promotion
joining the index.                               sector take time to bear fruit. It lags       China                                                    Ethics Commission on Automated and                                                             Japan
                                                                                                                                                                                                       of AVs among its tasks. Berlin and
                                                 behind other countries in 4G coverage,                                                       1.00      Connected Driving,” says Moritz Püstow,                                                                                                         1.00
The UK government’s forward-thinking                                                                                                                                                                   Brandenburg (the state surrounding the
                                                 global connectivity, quality of roads         United States                                            Partner, KPMG Law in Germany. “The                                                             South Korea
approach to deploying AVs places it second                                                                                                                                                             capital) are both analyzing the market
                                                 (especially smaller roads) and logistics                                            0.83               government has developed measures to                                                                                                     0.86
on the policy and legislation pillar, and                                                                                                                                                              for research and development work on
                                                 infrastructure. Promisingly, extensive        United Kingdom                                           implement these ethical rules. It is unique                                                    Germany
first on the new data-sharing sub-pillar. In                                                                                                                                                           AVs. Public transport providers in Berlin,
                                                 investments are being made in 5G to                                         0.65                       worldwide.”                                                                                                                       0.75
August 2018, the UK Parliament passed                                                                                                                                                                  Hamburg and Frankfurt, as well as the
                                                 connect 5G test beds and test tracks.         Finland                                                                                                                                                 United States
the Automated and Electric Vehicles Act,                                                                                   0.61                         More generally, based on the coalition         national railway company Deutsche                              0.34
which adapts the existing motor insurance        Regarding physical infrastructure, the        Norway                                                   agreement for Germany’s new federal            Bahn, are testing autonomous buses in           United Kingdom
framework by extending compulsory                UK’s island geography — and therefore                                   0.57                           government from February 2018, a               a range of settings, and there are more                    0.25
insurance to AVs as well as the driver.56 In     short freight journey distances, a larger                                                              legal framework is being developed to          than 20 AV test sites nationwide.
                                                                                               Source: Statista, 2018                                                                                                                                  Source: PatSeer, 2018
November, the government announced               number of bends on motorways and                                                                       allow autonomous driving in specific
                                                                                                                                                                                                       As with the UK, Germany moves down
support for three public trials in 2021,         frequent junction points — may inhibit the                                                             settings.62
                                                                                                                                                                                                       two places as a result of new entrants
including AV buses across the Forth              development of truck platooning, which
                                                                                                                                                        The coalition agreement also led to            in the index. It records the best score for           ast year, the Federal
Bridge in Scotland and self-driving taxis in     is an early opportunity for AV technology.          he UK continues to
                                                                                                    T                                                   the government agreeing to establish           road logistics infrastructure, as well as            Government passed an
London.57 Additionally, in December 2018,        However, physical infrastructure will
the UK Parliament published an extensive         improve as the UK government delivers
                                                                                                    make strong progress                                a National Platform Future of Mobility         strong results on industry partnerships
                                                                                                                                                                                                                                                            action plan on the report
                                                                                                    towards AV adoption, as                             task force,63 which will consider              and AV-related patents. While Germany’s
report outlining their proactive approach to     increased investment across the road
                                                                                                                                                        digitalization among other topics.             powerful automotive industry gives                   by an Ethics Commission
pursuing the benefits of MaaS.58                 network and key infrastructure operators           a center of innovation                                                                             the country a strong base, with Bosch                on Automated and
                                                 collaborate with central government and            and testing, which is
Cross-government collaboration has also                                                                                                                 “The German federal government                 particularly active in filing patents on             Connected Driving. It is
                                                 industry to support the deployment of AVs.
been effective. For instance, the Law                                                               supported by world class                            is systematically implementing its             AV technology, Püstow says the highly
                                                                                                                                                                                                                                                            unique worldwide.
Commissions of England and Wales                 Improving consumer acceptance will                                                                     strategy for automated and connected           devolved nature of government — with
                                                                                                    policy and legislation.                             driving,” says Christine Greulich,
and Scotland are currently reviewing the         be critical for the deployment of AVs.                                                                                                                more than 11,000 municipalities —
                                                                                                                                                        Division Head, Automated Driving
                                                                                                                                                                                                                                                                                — Moritz Püstow
UK’s legal framework for AVs, due to be          To achieve this, government and industry                — Sarah Owen-Vandersluis                                                                      makes it difficult to set national standards
completed in March 2021.59 Across the            have a role to play in communicating the                                          Partner,             and Intelligent Transport Systems              and strategy.
                                                                                                                                                                                                                                                                               KPMG Law in Germany
UK, there has been a concerted effort to         benefits of AVs and the efforts being                    Head of Public Mobility Strategy,             at the German Federal Ministry of
develop CAV strategies, business plans and       taken to ensure their safety. In part, this                                                                                                                                                                                                      Bio
                                                                                                                         KPMG in the UK
road maps, with recent initiatives spanning      can be achieved through rigorous testing
Scotland, the West Midlands and the UK’s         and the publication of safety standards —
federal Department for Transport (DfT).          such as the new cyber security standard
                                                 for AVs, published in December 2018.60
“The UK has made a lot of inroads, with
big investments, a committed government

20    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                                        2019 Autonomous Vehicles Readiness Index          21
9 United Arab Emirates                                                                                                                                   10 Japan
     Policy and
     legislation      11              Technology and
                                      innovation           14             Infrastructure
                                                                                                5             Consumer
                                                                                                              acceptance             7                      Policy and
                                                                                                                                                            legislation     15               Technology and
                                                                                                                                                                                             innovation           5           Infrastructure
                                                                                                                                                                                                                                                   3                Consumer
                                                                                                                                                                                                                                                                    acceptance      18

The UAE is boosted by                            making its government paperless by            Road infrastructure quality — score by                    Japan performs well on                      2018 saw AV proofs of concept by public        AV-related patents (per capita) — score
                                                 2021.67 Dubai aims to run “all applicable     country (top 5)                                                                                       and private-sector organizations focused       by country (top 5)
good road quality and high                       government transactions” through                                                                        innovation and infrastructure               on taxis and buses within defined areas,
                                                                                               United Arab Emirates                                                                                                                                 Japan
consumer opinion of AVs, but                     blockchain, a decentralized system                                                               1.00   and sees a specific need for                including airports. Iguchi says that the                                                      1.00
does less well on data-sharing,                  that uses encryption to make data             Singapore                                                 AVs for its aging population,               development of AVs in Japan means              South Korea
                                                 entered permanent and unalterable,                                                            0.99                                                  dealing with strong regulations, pressure                                              0.86
AV businesses and patents.                       which can be used for ‘smart contracts’       The Netherlands
                                                                                                                                                         but needs more deregulation                 groups and technical problems caused           Germany
The United Arab Emirates (UAE)
                                                 that automate transactions between                                                        0.93          and promotion.                              by snowfall and earthquakes. “The                                               0.75
                                                 multiple parties. Such contracts could        Japan                                                                                                 problems of aging public infrastructure,       United States
moves up one place relative to the                                                                                                                       Japan performs strongly on technology
                                                 be used by AV operators to handle                                                       0.88                                                        in roads, tunnels and bridges, and their                      0.34
other countries in the AVRI because                                                                                                                      and innovation, where it is fifth overall
                                                 payments for charging or selling data         France                                                                                                maintenance costs are also serious,” he        United Kingdom
it has outpaced other countries in the                                                                                                                   and has the most AV-related patents. It
                                                 generated by vehicles.                                                                 0.86                                                         adds.                                                     0.25
consumer acceptance pillar, with the                                                                                                                     also does well on infrastructure, where
third most-positive consumer opinions            “With Dubai’s enthusiasm for
                                                                                               Source: World Economic Forum, Global Competitive
                                                                                                                                                         it is third overall and has the second-     He believes that deregulation and
                                                                                                                                                                                                                                                    Source: PatSeer, 2018
                                                                                               Index 2018
of AVs. It leads the measures on road            technological innovations, in particular                                                                highest scores for both 4G coverage         a campaign to promote AVs led
quality and the change readiness of              its forays into artificial intelligence and                                                             and road logistics infrastructure. These    by leading companies would be of
its technology infrastructure, and also                                                        Consumer opinion about AVs — score                                                                                                                   Extent of 4G coverage — score by
                                                 blockchain, the UAE is well-positioned                                                                  help improve its ranking, despite the       benefit. “There are great opportunities
scores highly for its government’s                                                             by country (top 5)                                                                                                                                   country (top 5)
                                                 to do even better in the future,” says                                                                  entry of new countries above it. It is      surrounding the 2020 Olympic
overall change readiness. It scores              Ravi Suri, Partner, Global Head of            India                                                     mid-table on policy and legislation and     Games in Tokyo. This means there is a          South Korea
less well on data-sharing, AV company            Infrastructure Finance, KPMG in the                                                            1.00
                                                                                                                                                         consumer acceptance, and currently          possibility that the practical application                                                    1.00
headquarters and AV-related patents.             Lower Gulf. “These are technologies that      Mexico                                                    has one of the lowest uses of online        of automatic driving will be accelerated       Japan
                                                 should enable the introduction of AVs.”                                                        0.99                                                 in the next couple of years,” he says.                                                   0.92
Dubai, the UAE’s largest city, aims to                                                                                                                   ride-hailing.
                                                                                               United Arab Emirates                                                                                  There is already political will behind         Norway
make 25 percent of all transportation            Newly built Masdar City, in Abu Dhabi                                                         0.97      The use of AVs in Japan will be                                                                                                    0.85
                                                                                                                                                                                                     this: in June, an economic review by
autonomous by 2030, based on a                   in the UAE, has transported more than         Russia                                                    influenced by its status as a rapidly                                                      United States
                                                                                                                                                                                                     the government included plans to start
strategy launched in 2016 that focuses           two million people on its Personal                                                     0.87             aging society, where a quarter of the                                                                                        0.78
                                                                                                                                                                                                     testing AVs on public roads, followed
on environmental and efficiency                  Rapid Transit driverless pods since           Brazil                                                    population is older than 65, according                                                     The Netherlands
                                                                                                                                                                                                     by a public service for the 2020 Games,
improvements and is expected to                  2010, running on special guideways.                                                   0.83              to Koichi Iguchi, Partner, Head of Global                                                                                   0.76
                                                                                                                                                                                                     then a commercial offering by 2022.69
generate AED22 billion ($US6 billion)            In October 2018, the city launched a          Source: KPMG International, 2019                          Strategy Group, KPMG in Japan. This                                                        Source: Open Signal, 2018
annually.65 In September 2016, Dubai’s           regular AV minibus service, with plans                                                                  means a focus on reducing accidents
Road and Transport Authority trialled an         to launch seven more in 2019.68                                                                         and congestion, improving efficiency
AV shuttle on a 700m route, offering                                                                 ith Dubai’s enthusiasm
                                                                                                    W                                                    and — in particular — providing                                                                  here are great
free rides to commuters.66
                                                                                                    for technological                                    mobility for older people, particularly                                                         opportunities surrounding
Other technology initiatives by Dubai                                                               innovations, in particular                           in rural areas. Hundreds of towns and                                                           the 2020 Olympic Games
                                                                                                                                                         villages have no doctors, millions of
may contribute to these ambitions.                                                                  its forays into artificial                           older people have difficulty shopping                                                           in Tokyo. This means there
In October 2018, it announced the
launch of a government-endorsed
                                                                                                    intelligence and                                     and there has been a sharp increase                                                             is a possibility that the
blockchain platform, using technology                                                               blockchain, the UAE is                               in those who have had to return their                                                           practical application of
                                                                                                                                                         driving license over the last decade.
from IBM, as part of a move towards                                                                 well-positioned to do                                                                                                                                automatic driving will be
                                                                                                    even better in the future.                                                                                                                           accelerated in the next
                                                                                                    These are technologies                                                                                                                               couple of years.
                                                                                                    that should enable the
                                                                                                                                                                                                                                                                                — Koichi Iguchi
                                                                                                    introduction of AVs.                                                                                                                                                               Partner,
                                                                                                                                                                                                                                                                Head of Global Strategy Group,
                                                                                                                                  — Ravi Suri                                                                                                                                  KPMG in Japan
                                                                                                                    Partner, Global Head of
                                                                                                                    Infrastructure Finance,                                                                                                                                                  Bio
                                                                                                                   KPMG in the Lower Gulf

22    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                                    2019 Autonomous Vehicles Readiness Index         23
11 New Zealand                                                                                                                                       12 Canada
     Policy and
     legislation         3            Technology and
                                      innovation           16             Infrastructure
                                                                                               17             Consumer
                                                                                                              acceptance            8                   Policy and
                                                                                                                                                        legislation          8            Technology and
                                                                                                                                                                                          innovation       11           Infrastructure
                                                                                                                                                                                                                                           16               Consumer
                                                                                                                                                                                                                                                            acceptance          11

New Zealand’s strong                             mainly quiet roads, mobile networks           Effectiveness of the legislative process —            Canada has a good quality                   Pilot Program, started in 2016 and         Government-funded AV pilots — score
                                                 are patchy and current vehicles are           score by country (top 5)                                                                          involving Uber — which is testing self-    by country (top 5)
government performance                           a mixture of new cars from Europe             Singapore
                                                                                                                                                     workforce and strong                        driving vehicles in Toronto — Canadian     Canada
partly counteracts lack                          and second-hand imports from Asia.                                                           1.00   government leadership, with                 technology company BlackBerry                                                               1.00
of scale and domestic                            Istvan Csorogi, Director, Advisory,           New Zealand
                                                                                                                                                     Ontario allowing tests of                   and the University of Waterloo.74          Czech Republic
                                                 KPMG in New Zealand, says this will                                                   0.88                                                      The province has established an                                                             1.00
manufacturing, and the                           make it harder to introduce infrastructure    United Kingdom                                        fully driverless vehicles, but              Autonomous Vehicle Innovation              Singapore
country has opportunities in                     for AVs.                                                                             0.85           the country’s large size and                Network and an Automotive Supplier                                                          1.00
                                                                                               Norway                                                                                            Competitiveness Improvement
software and agriculture.                        However, it does have excellent                                                   0.79
                                                                                                                                                     remote locations may stretch                Program, the latter providing matched
                                                                                                                                                                                                                                            South Korea
New Zealand has a strong
                                                 governance, recognized by its third place     Sweden                                                AV infrastructure.                          funding for innovation by smaller          China
                                                 on policy and legislation and high scores                                         0.79                                                          suppliers.75
reputation as a place to develop                                                                                                                     Canada’s main strengths on AVs                                                                                                    0.91
                                                 for AV-focused agencies, effectiveness of     Source: World Economic Forum Networked Readiness
new technologies, although further                                                                                                                   are the high quality of its existing                                                   Source: KPMG International, 2019
                                                 legislative process and quality of judicial   Index, 2018                                                                                       Earp says that specific challenges
development often takes place                                                                                                                        workforce, its status as an attractive
                                                 system. “New Zealand is well-placed in                                                                                                          for AVs in Canada include designing
elsewhere. Ohmio, a company that                                                                                                                     and open destination for skilled
                                                 its readiness for AVs due to our robust                                                                                                         systems that work in remote areas
staged trials of its driverless minibuses                                                      Industry investment and partnerships in               immigrants and strong leadership from                                                  Data sharing and open data
                                                 regulatory and business environment,”         AV-related firms (per capita) — score by                                                          and urban environments, and work
at Christchurch airport, announced in                                                                                                                different levels of government that                                                    environment — score by country (top 5)
                                                 says Richard Cross, Manager, Strategic        country (bottom 5)                                                                                needed on exporting and international
June 2018 a new joint venture with the                                                                                                               see the potential benefits, according                                                  United Kingdom
                                                 Policy and Innovation, Ministry of            New Zealand                                                                                       partnerships. However, he adds that
city of Heshan in China, which would                                                                                                                 to Colin Earp, National Transport Lead,                                                                                                 1.00
                                                 Transport. “Our legislative process and        0.00                                                                                             there are likely to be opportunities
see manufacturing and much research                                                                                                                  KPMG in Canada.                                                                        Canada
                                                 relatively small size compared to many        Czech Republic                                                                                    from the Investing in Canada Plan,
move to that city.70                                                                                                                                                                                                                                                               0.87
                                                 other countries means that we can be           0.00                                                                                             through which the federal government
                                                                                                                                                     “There’s this real feeling that transport                                              France
The government is working to                     agile. New Zealand regulators have a          Finland                                                                                           is spending more than 180 billion
                                                                                                                                                     drives not just economic productivity,                                                                                      0.81
encourage early-stage work. The                  can-do attitude and a focus on finding          0.00                                                                                            Canadian dollars (US$137 billion) over
                                                                                                                                                     it drives social equity and commercial                                                 United States
New Zealand Transport Agency has                 solutions and removing barriers.” The         Hungary                                                                                           12 years on a range of infrastructure.
                                                                                                                                                     activity. In that respect, you’re seeing                                                                                   0.77
identified an area of Christchurch               government has defined a specific               0.00                                                                                            The plan covers transport in two of
                                                                                                                                                     civic, provincial and national leaders                                                 South Korea
that was ‘red-zoned’ (categorized for            testing framework for AVs.73                  Mexico                                                                                            its five main areas, and in 2018, ran
                                                                                                                                                     really begin to create an inclusive and                                                                                    0.77
redevelopment after damage in the                                                                0.00                                                                                            a specific Smart Cities Challenge
                                                 Csorogi says there is potential for the                                                             collaborative culture to drive better                                                  Source: Open Data Barometer, 2018
city’s 2011 earthquake) as a location                                                          Source: CrunchBase, 2018                                                                          competition for localities. The federal
                                                 country to specialize: “In New Zealand,                                                             transportation in the future, including
for the Christchurch Mobility Lab, a                                                                                                                                                             government has also supported
                                                 it’s about developing the intelligence                                                              AVs,” he says.
trial area for AVs.71                                                                                                                                                                            research into how AVs will change
The country is already used by
                                                 within these vehicles. I don’t think               In New Zealand, it’s                                                                        Canada’s economy and job market.76               here’s this real feeling
                                                                                                                                                     An example is Ontario, which is home
companies testing the Cora, an
                                                 we’ll ever produce mainstream AVs,                  about developing the                            to more than a third of the population                                                      that transport drives not
                                                 but there is an opportunity to develop                                                                                                          While Canada does relatively well on
autonomous flying taxi.72
                                                 artificial intelligence and AV controls
                                                                                                     intelligence within                             and many vehicle and technology
                                                                                                                                                                                                 government and industry involvement,
                                                                                                                                                                                                                                                 just economic productivity,
New Zealand does not manufacture                 here.” This could focus on specific                 these vehicles. I don’t                         companies. The province has lifted
                                                                                                                                                                                                 it ranks low on 4G coverage, the two            it drives social equity and
                                                                                                                                                     some regulations on AVs, meaning
vehicles or carry out mainstream                 areas including agriculture, drones                 think we’ll ever produce                        that from January 2019 completely
                                                                                                                                                                                                 infrastructure scores and EV charging           commercial activity. In
research and development, its                    and controlled environments such                    mainstream AVs, but                             driverless vehicles can be tested on its
                                                                                                                                                                                                 stations, and drops five places in the          that respect, you’re seeing
domestic market is small and many                as campuses and airports. He adds                                                                                                               overall index, partly due to two new
                                                 that autonomy should have particular                there is an opportunity                         roads. The changes are a development
                                                                                                                                                                                                 entrants higher in the index.
                                                                                                                                                                                                                                                 civic, provincial and national
technology companies are foreign-
owned. In the index, New Zealand                 benefits for New Zealanders, where                  to develop artificial                           of Ontario’s 10-year Automated Vehicle                                                      leaders really begin to
scores low on the number of AV                   the lack of central barriers makes                  intelligence and AV                                                                                                                         create an inclusive and
companies and industry investments,              lane correction an important safety                                                                                                                                                             collaborative culture to drive
                                                 measure, something which may
                                                                                                     controls here.
despite both being calculated per
capita. The country’s low population             take advantage of work the country                                                                                                                                                              better transportation in the
                                                                                                                          — Istvan Csorogi                                                                                                       future, including AVs.
density and location provide particular          is undertaking with Australia to
                                                 augment the accuracy of GPS satellite                                  Director, Advisory,
challenges for AV adoption: there
                                                 technology.                                                         KPMG in New Zealand                                                                                                                                   — Colin Earp
is little current justification for
management infrastructure on                                                                                                              Bio                                                                                                                    National Transport Lead,
                                                                                                                                                                                                                                                                       KPMG in Canada

24    2019 Autonomous Vehicles Readiness Index                                                                                                                                                                                             2019 Autonomous Vehicles Readiness Index           25
You can also read